Smaller cannabis cultivation businesses could get access to publicly financed loans of up to $250,000 under a proposal in New Mexico as the state attempts to promote social and economic fairness.
The New Mexico Finance Authority recommended a $5 million line of credit to cannabis “microbusinesses,” seeking approval from state legislators, the Press Harold reported. Under the proposal lending rules, loans would be made available to qualified cannabis “microbusinesses” that are licensed to cultivate and sell marijuana from up to 200 plants at a single location, operating much like a craft winery or brewery.
“They have very few options. If you are a startup cannabis microbusiness, you can’t go to a bank, you can’t go to the Small Business Administration,” said New Mexico Finance Authority CEO Marquita Russel. “There is not a space for a small business to get a loan of this sort.”
State cannabis and finance regulators acknowledged that challenges likely lie ahead in vetting small loan applications from unproven business in a startup industry emerging partly from the black market.
Experienced medical marijuana companies would not qualify under proposed lending rules aimed at helping small, newly licensed growers.